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Workplace organization and innovation

Author

Listed:
  • Cindy Zoghi
  • Robert D. Mohr
  • Peter B. Meyer

Abstract

This study uses panel data on Canadian establishments to explore the relationship between the organization of work – in particular decentralization, information‐sharing, and incentive pay schemes – and innovation. Like other studies, ours finds a clear positive link between these factors. However, the data give strong indications that this relationship is not causal. We show that: (1) the correlation between workplace organization and innovation holds for information‐sharing but is much weaker for decentralized decision‐making or incentive pay programs, (2) controls for unobserved heterogeneity significantly weaken results, and (3) lagged variables give no clear evidence that organizational changes predate innovation. Cette étude utilise des données de panel d'établissements canadiens pour explorer la relation entre l'organisation du travail – en particulier la décentralisation, le partage de l'information et les systèmes incitatifs de rémunération – et l'innovation. On découvre un lien clair et positif entre ces facteurs, cependant les données suggèrent clairement que cette relation n'est pas causale. On montre que (1) la corrélation entre les deux facteurs tient pour le partage de l'information mais est bien plus faible pour la décentralisation de la prise de décision et pour les systèmes incitatifs de rémunération; (2) quand on contrôle pour une hétérogénéité non observée, les résultats sont affaiblis de manière significative; et (3) les variables décalées dans le temps ne donnent pas d'indication que les changements organisationnels précèdent l'innovation.

Suggested Citation

  • Cindy Zoghi & Robert D. Mohr & Peter B. Meyer, 2010. "Workplace organization and innovation," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 43(2), pages 622-639, May.
  • Handle: RePEc:wly:canjec:v:43:y:2010:i:2:p:622-639
    DOI: 10.1111/j.1540-5982.2010.01586.x
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    References listed on IDEAS

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    Cited by:

    1. Krammer, Sorin, 2021. "Human Resource Policies And Firm Innovation: The Moderating Effects Of Economic And Institutional Context," MPRA Paper 109486, University Library of Munich, Germany.
    2. Muhammad Farooq & Irfan Ullah & Raja Mahzhar Hameed, 2016. "HR Practices and Organizational Innovation: The Mediating Role of Knowledge Management Effectiveness," Journal of Social and Development Sciences, AMH International, vol. 7(3), pages 50-67.
    3. Spyros Arvanitis & Florian Seliger & Tobias Stucki, 2013. "The Relative Importance of Human Resource Management Practices for a Firm's Innovation Performance," KOF Working papers 13-341, KOF Swiss Economic Institute, ETH Zurich.
    4. Krammer, Sorin M.S., 2022. "Human resource policies and firm innovation: The moderating effects of economic and institutional context," Technovation, Elsevier, vol. 110(C).
    5. Eriksson, Tor & Qin, Zhihua & Wang, Wenjing, 2014. "Firm-level innovation activity, employee turnover and HRM practices — Evidence from Chinese firms," China Economic Review, Elsevier, vol. 30(C), pages 583-597.
    6. Caroline Mothe & Uyen T. Nguyen-Thi & Phu Nguyen-Van, 2015. "Complementarities in organizational innovation practices: evidence from French industrial firms," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 24(6), pages 569-595, September.
    7. Adel Ben Khalifa, 2019. "Direct and Complementary Effects of Investment in Knowledge-Based Economy on Innovation Performance in Tunisian Firms," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 10(2), pages 561-589, June.
    8. Spyros Arvanitis & Euripidis N. Loukis & Vasiliki Diamantopoulou, 2013. "Are ICT, Workplace Organization and Human Capital Relevant for Innovation?," KOF Working papers 13-333, KOF Swiss Economic Institute, ETH Zurich.
    9. Spyros Arvanitis & Florian Seliger & Tobias Stucki, 2016. "The relative importance of human resource management practices for innovation," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 25(8), pages 769-800, November.
    10. Barba-Aragón, María Isabel & Jiménez-Jiménez, Daniel, 2020. "HRM and radical innovation: A dual approach with exploration as a mediator," European Management Journal, Elsevier, vol. 38(5), pages 791-803.
    11. Krammer, Sorin, 2021. "Navigating The New Normal: Which Firms Have Adapted Better To The Covid-19 Disruption?," MPRA Paper 109485, University Library of Munich, Germany.
    12. Krammer, Sorin M.S., 2022. "Navigating the New Normal: Which firms have adapted better to the COVID-19 disruption?," Technovation, Elsevier, vol. 110(C).

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